Chap009 Solution Manual(1)

9 8 chapter 09 accounting for receivables exercise 9

Info icon This preview shows pages 8–14. Sign up to view the full content.

View Full Document Right Arrow Icon
9-8
Image of page 8

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 09 - Accounting for Receivables Exercise 9-5 (15 minutes) a. Dec. 31 Bad Debts Expense * ............................................ 1,205 Allowance for Doubtful Accounts ................ 1,205 To record estimated bad debts expense. * Unadjusted balance ...................................................................... = $ 915 credit Estimated balance ($53,000 x .04) ...................................................................... = 2,120 credit Required adjustment ...................................................................... = $1,205 credit b. Dec. 31 Bad Debts Expense ** ............................................ 3,452 Allowance for Doubtful Accounts ................ 3,452 To record estimated bad debts expense. ** Unadjusted balance .................................................................... = $ 1,332 debit Estimated balance ($53,000 x .04) .................................................................... = 2,120 credit Required adjustment .................................................................... = $3,452 credit Exercise 9-6 (30 minutes) a. Computation of the estimated balance of the allowance for uncollectibles: Not due: $132,000 x 0.01 = $ 1,320 1 to 30: 30,000 x 0.02 = 600 31 to 60: 12,000 x 0.04 = 480 61 to 90: 6,000 x 0.07 = 420 Over 90: 10,000 x 0.12 = 1,200 $ 4,020 credit b. Dec. 31 Bad Debts Expense ........................................ 3,420 Allowance for Doubtful Accounts ............ 3,420 To record estimated bad debts. * * Unadjusted balance ............................ $ 600 credit Estimated balance .............................. 4,020 credit Required adjustment .......................... $3,420 credit c. Dec. 31 Bad Debts Expense ........................................ 4,420 Allowance for Doubtful Accounts ............ 4,420 9-9
Image of page 9
Chapter 09 - Accounting for Receivables To record estimated bad debts. * * Unadjusted balance ............................ $ 400 debit Estimated balance .............................. 4,020 credit Required adjustment .......................... $4,420 credit 9-10
Image of page 10

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 09 - Accounting for Receivables Exercise 9-7 (25 minutes) a. Computation of the estimated balance of the allowance for uncollectibles: $190,000 x 0.035 = $6,650 credit b. Dec. 31 Bad Debts Expense ........................................ 6,350 Allowance for Doubtful Accounts ............ 6,350 To record estimated bad debts. * * Unadjusted balance ........................... $ 300 credit Estimated balance ............................. 6,650 credit Required adjustment ......................... $6,350 credit c. Dec. 31 Bad Debts Expense ........................................ 6,850 Allowance for Doubtful Accounts ............ 6,850 To record estimated bad debts. * * Unadjusted balance ........................... $ 200 debit Estimated balance ............................. 6,650 credit Required adjustment ......................... $6,850 credit Exercise 9-8 (20 minutes) Feb. 1 Allowance for Doubtful Accounts ....................... 1,900 Accounts Receivable—Oxford Co ................ 400 Accounts Receivable—Brookes Co .............. 1,500 To write off specific accounts. June 5 Accounts Receivable—Oxford ............................ 400 Allowance for Doubtful Accounts ................. 400 To reinstate an account. June 5 Cash ..................................................................... 400 Accounts Receivable—Oxford ...................... 400 To record cash received on account. 9-11
Image of page 11
Chapter 09 - Accounting for Receivables Exercise 9-9 (25 minutes) a. Expense is 1.5% of credit sales Dec. 31 Bad Debts Expense ........................................... 13,500 Allowance for Doubtful Accounts .............. 13,500 To record estimated bad debts [$900,000 x .015]. b. Expense is 0.5% of total sales Dec. 31 Bad Debts Expense ........................................... 10,500 Allowance for Doubtful Accounts .............. 10,500 To record estimated bad debts [($900,000 + $1,200,000) x .005]. c. Allowance is 6% of accounts receivable Dec. 31 Bad Debts Expense ........................................... 14,700 Allowance for Doubtful Accounts .............. 14,700 To record estimated bad debts. * * Unadjusted balance .................................... $ 3,000 debit . Estimated balance ($195,000 x 6%) ........... 11,700 credit Required adjustment .................................. $14,700 credit 9-12
Image of page 12

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 09 - Accounting for Receivables Exercise 9-10 (20 minutes) July 4 Accounts Receivable ...................................... 6,295 Sales .......................................................... 6,295 To record sales on credit. Cost of Goods Sold ........................................ 4,000 Merchandise Inventory ............................. 4,000 To record cost of sales. 9 Cash ................................................................. 17,280 Factoring Fee Expense* ................................. 720 Accounts Receivable ................................ 18,000 To record sale of receivable. *($18,000 x .04) 17 Cash ................................................................. 3,436 Accounts Receivable ................................ 3,436 To record cash received on account.
Image of page 13
Image of page 14
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern